Australia

Two major Centro shopping centres come to market following successful transaction of 50% stake in three regional centres two weeks ago for $690.4m

2012-05-31T05:00:00Z

50% stake in two major centres in NSW - Bankstown and Roselands – being offered to market

AUSTRALIA, 30 MAY 2012 – Hot on the heels of the largest agency negotiated real estate transaction of any asset class in Australia for 2012 – unconditional contracts for the sale of a 50% ownership stake in three Centro regional shopping centres for $690.4 million – a further stakes in two centres is being offered to the market.

Simon Rooney from Jones Lang LaSalle has been appointed by Centro to sell 50% interests in their two largest New South Wales assets, Bankstown regional shopping centre on behalf of Centro MCS28 Syndicate and Roselands regional shopping centre on behalf of Centro MCS21 Syndicate. Centro Retail Australia (ASX:CRF) will retain the residual 50% interests and will provide all property level services through their existing fully integrated management platform.

The assets have a combined book value of $442.9 million (50% interest), which reflects a blended core capitalisation rate of approximately 6.84% as at 31 December 2011.

Australian Head of Retail Investments at Jones Lang LaSalle, Simon Rooney said, “The CRF portfolio transaction two weeks ago, combined with major sales of Westfield Doncaster, Northland Shopping Centre, Myer Centre Brisbane and Cairns Central have highlighted to the key onshore and international investors the real window of opportunity they currently have to acquire strategic JV stakes in some of Australia’s best regional shopping centres, with the benefit of incumbent, high quality managers.

“The well-known Bankstown and Roselands regional shopping centre assets being offered by the two syndicated funds, MCS28 and MCS21, traded well through the GFC given their dominant trading positions in both of their respective, densely populated, western Sydney markets. Each asset presents attractive further development plays in the short term with keen tenant support,” said Mr Rooney.

Bankstown is prominently located in one of Australia's most densely populated trade areas, with a total trade area population of 339,960. Anchor tenants include Myer, Big W, Target, Kmart, Woolworths and Franklins. The 85,738sqm Centre offers multiple value-add opportunities, with short to medium term opportunities for redevelopment and expansion.

Roselands is supported by a substantial total trade area population of 447,430 residents. The 61,471sqm fully-enclosed regional shopping centre is spread over three levels and is anchored by Myer, Target, Coles and Food for Less. The Centre’s site:GLA ratio is a minimal 44%, with a large amount of vacant undeveloped land. Importantly, there is a major expansion planned for the site.